KLCP2020: Lower density for comercial developments in KL

It is also seen that having a lower density could lead to urban sprawl in the fringe of Kuala Lumpur, resulting in less ‘saturated’ city centre.

Kuala Lumpur City Plan 2020 (KLCP2020) which was gazetted on 30th October 2018 has seen the Kuala Lumpur City Hall (DBKL) implementing a city framework that takes into account measures for the betterment of Kuala Lumpur in a long term.

One of the significant steps includes capping a plot ratio at 1:10 for all types of developments, commercial and residential in Kuala Lumpur.

PLOT RATIO?

A plot ration refers to the density of buildings in a specified area of land. It is the allowed maximum built floor area for every acre of land. There can be a plot ratio for with and without car park for the subject land. For example, 1 acre in KLCC can build 10 acres of gross floor area.

Plot ratio cap in the KLCP2020 aims to regulate the rapid developments of high-rise projects in the everygrowing capital city. It is also seen that having a lower density could lead to urban sprawl in the fringe of Kuala Lumpur, resulting in less ‘saturated’ city centre.

THE CHANGES FOR GREATER GOOD

Previously, property developers have allotted as high as 1:20 when it was supposed to be 1:17 as per their approval principle. Thus, a lower plot ratio now means less units are allowed to be built on the same plot of land.

However, projects that have been given development order are not affected and are allowed to procced. For the projects that received the development order but have yet to commence, they are only required to apply for an extension to later date.

Under the current circumstances, developers will have to scale down their projects or re-submit their plans to seek fresh approvals for a higher plot ratio.

Nonetheless, the above required does not apply for government statutory bodies such as the Employees Provident Funds (KWSP), Social Security Organisation (SOCSO) if the parcels that they have acquired are granted plot ration higher than 10 in the approval principle.

REACTIONS BY REHDA

REHDA KL has recently described DBKL’s move to cap the plot ratio as “unfair to the players that have invested in land with approved high plot ratio”.

Appealing for the plot ratio to be raised in the KLCP2040, Datuk Wan Hashimi Albakri Wan Ahmad Amin Jaffri commented that developers are less likely to resubmit plans to satisfy the gazetted lower density requirement.

He was of the view that developments in Kuala Lumpur will be stifled as a result to the lot ratio restriction when it should have been more compact and vertical as land is getting scarce.

In recent statements by Federal Territories Minister, Khalid Samad stated that the Ministry noted how this lower plot ratio might not be good news for some developers as fewer office units are allowed to be built on the same plot of land which will, in turn, affect the profitability of their projects.

However, there is still a provision for exemption for specific projects but with conditions. Plot ratio for a particular project can be reset based on the merit of each application.

In the event that there was an approval originally given in principle, it will be taken into consideration.

Khalid has further assured that there is no moratorium on new property projects but the scale of the project will be monitored through limiting the plot ratio according to the KLCP 2020.